What the U.S. Credit Rating Downgrade Means to You

"We're facing something that's unprecedented," says Dr.Stephanie Rauterkus, UAB Assistant Professor of Finance, in a CBS42 news report. "So even what should have happened from a theoretical perspective- didn't really happen.  We should have seen interest rates go up and they didn't- they went down."  


How this impacts you has a lot to do with your investment horizon.

"For someone in their 20's this is something that they have plenty of time to ride out. So for them it's not really as detrimental as the folks who are nearing retirement and really were kind of putting the finishing touches on that nest egg," said Rauterkus.

Professor Rauterkus says there is no reason to think that the sky is falling, but if people panic and pull their money out of the stock market they could lock in their losses.

"I'm not terrified for the long range because I'm pretty sure that we're going to...we're going to figure this out. We're going to work it out and we're going to come back strong," said Homewood area resident Bryan Hyde.  Full article at CBS42.com